FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks September 11, 2008 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures reserve balances of depository institutions at Week ended Change from week ended Wednesday Federal Reserve Banks Sep 10, 2008 Sep 3, 2008 Sep 12, 2007 Sep 10, 2008 Reserve Bank credit 888,283 - 5,563 + 30,786 906,793 Securities held outright 479,762 + 61 - 299,877 479,782 U.S. Treasury (1) 479,762 + 61 - 299,877 479,782 Bills (2) 21,740 0 - 245,279 21,740 Notes and bonds, nominal (2) 411,731 0 - 60,411 411,731 Notes and bonds, inflation-indexed (2) 39,832 0 + 4,079 39,832 Inflation compensation (3) 6,459 + 61 + 1,734 6,480 Federal agency (2) 0 0 0 0 Repurchase agreements (4) 110,821 - 5,072 + 77,464 126,750 Term auction credit 150,000 0 + 150,000 150,000 Other loans 19,891 + 821 + 16,733 23,556 Primary credit 19,796 + 820 + 16,864 23,455 Secondary credit 0 0 0 0 Seasonal credit 95 + 2 - 131 101 Primary dealer credit facility 0 0 0 0 Other credit extensions 0 0 0 0 Net portfolio holdings of Maiden Lane LLC (5) 29,293 + 40 + 29,293 29,327 Float -1,048 + 426 - 2,379 -1,293 Other Federal Reserve assets 99,563 - 1,841 + 59,551 98,671 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 2,200 0 0 2,200 Treasury currency outstanding (6) 38,817 + 14 + 211 38,817 Total factors supplying reserve funds 940,340 - 5,550 + 30,996 958,851 Currency in circulation (6) 834,619 - 700 + 21,687 834,711 Reverse repurchase agreements (7) 42,690 - 190 + 8,399 44,296 Foreign official and international accounts 42,690 - 190 + 8,399 44,296 Dealers 0 0 0 0 Treasury cash holdings 275 - 6 - 67 268 Deposits with F.R. Banks, other than reserve balances 12,251 + 11 + 523 13,313 U.S. Treasury, general account 4,723 - 23 - 32 5,412 Foreign official 161 + 61 + 64 522 Service-related 7,086 - 1 + 475 7,086 Required clearing balances 7,086 - 1 + 475 7,086 Adjustments to compensate for float 0 0 0 0 Other 281 - 26 + 16 292 Other liabilities and capital (8) 42,529 - 1,748 + 1,465 41,300 Total factors, other than reserve balances, absorbing reserve funds 932,363 - 2,634 + 32,006 933,887 Reserve balances with Federal Reserve Banks 7,978 - 2,915 - 1,009 24,964 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Estimated. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to table 2 and the note on consolidation accompanying table 5. Sources: Federal Reserve Banks and the U.S. Department of the Treasury. 1A. Memorandum Items, September 10, 2008 Millions of dollars Averages of daily figures Memorandum item Week ended Change from week ended Wednesday Sep 10, 2008 Sep 3, 2008 Sep 12, 2007 Sep 10, 2008 Marketable securities held in custody for foreign official and international accounts (1) 2,395,347 - 8,477 + 414,026 2,394,660 U.S. Treasury 1,439,662 + 1,698 + 232,520 1,438,094 Federal agency 955,685 - 10,175 + 181,505 956,566 Securities lent to dealers 118,063 - 8,034 + 112,544 117,340 Overnight facility (2) 2,165 - 7,827 - 3,354 1,441 Term facility (3,4) 115,899 - 206 + 115,899 115,899 Note: Components may not sum to totals because of rounding. 1. Face value of the securities. Includes U.S. Treasury STRIPS and other zero-coupon bonds at face value. 2. Fully collateralized by U.S. Treasury securities. 3. Fully collateralized by U.S. Treasury securities, federal agency securities, and highly rated non-agency asset-backed and mortgage-backed securities. 4. On September 10, 2008, option contracts on draws on the Term Securities Lending Facility totaling $ 49,998 million were outstanding. The exercise date for the options is September 24, 2008, and the draws have a term of September 25, 2008 through October 2, 2008. 2. Information on Principal Accounts of Maiden Lane LLC Millions of dollars Wednesday Account name Sep 10, 2008 Net portfolio holdings of Maiden Lane LLC (1) 29,327 Outstanding principal amount of loan extended by the Federal Reserve Bank of New York (2) 28,820 Accrued interest payable to the Federal Reserve Bank of New York (2) 136 Outstanding principal amount and accrued interest on loan payable to JPMorgan Chase & Co. (3) 1,166 1. Fair value. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Revalued quarterly. This table reflects valuations as of June 30, 2008. 2. Book value. This amount was eliminated when preparing the Federal Reserve Bank of New York's statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 5. 3. Book value. The fair value of these obligations is included in other liabilities and capital in table 1 and in other liabilities and accrued dividends in table 4 and table 5. Note: On June 26, 2008, the Federal Reserve Bank of New York (FRBNY) extended credit to Maiden Lane LLC under the authority of section 13(3) of the Federal Reserve Act. This limited liability company was formed to acquire certain assets of Bear Stearns and to manage those assets through time to maximize repayment of the credit extended and to minimize disruption to financial markets. Payments by Maiden Lane LLC from the proceeds of the net portfolio holdings will be made in the following order: operating expenses of the LLC, principal due to the FRBNY, interest due to the FRBNY, principal due to JPMorgan Chase & Co., and interest due to JPMorgan Chase & Co. Any remaining funds will be paid to the FRBNY. 3. Maturity Distribution of Term Auction Credit, Other Loans, and Securities, September 10, 2008 Millions of dollars U.S. Treasury Reverse Remaining maturity Term Other securities (2) Repurchase repurchase auction loans Weekly agreements agreements credit (1) Holdings changes (3) (3) Within 15 days 125,000 8,539 14,955 + 104 86,750 44,296 16 days to 90 days 25,000 15,017 31,549 - 104 40,000 0 91 days to 1 year --- 0 69,272 + 4 --- --- Over 1 year to 5 years --- --- 170,807 + 18 --- --- Over 5 years to 10 years --- --- 91,863 + 12 --- --- Over 10 years --- --- 101,337 + 23 --- --- All 150,000 23,556 479,782 + 56 126,750 44,296 Note: Components may not sum to totals because of rounding. --- Not applicable. 1. Excludes the loan from the Federal Reserve Bank of New York to Maiden Lane LLC that was eliminated when preparing that Bank's statement of condition consistent with consolidation under generally accepted accounting principles. The loan to Maiden Lane LLC is designed to be repaid from the orderly liquidation of Maiden Lane LLC's portfolio holdings and does not have a fixed amortization schedule. 2. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 3. Cash value of agreements. 4. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Eliminations Change since from Wednesday Wednesday Wednesday Assets, liabilities, and capital consolidation Sep 10, 2008 Sep 3, 2008 Sep 12, 2007 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 2,200 0 0 Coin 1,445 + 31 + 396 Securities, repurchase agreements, term auction credit, and other loans 780,089 + 22,274 - 51,934 Securities held outright 479,782 + 56 - 299,856 U.S. Treasury (1) 479,782 + 56 - 299,856 Bills (2) 21,740 0 - 245,279 Notes and bonds, nominal (2) 411,731 0 - 60,411 Notes and bonds, inflation-indexed (2) 39,832 0 + 4,079 Inflation compensation (3) 6,480 + 57 + 1,756 Federal agency (2) 0 0 0 Repurchase agreements (4) 126,750 + 17,750 + 81,750 Term auction credit 150,000 0 + 150,000 Other loans 23,556 + 4,467 + 16,170 Net portfolio holdings of Maiden Lane LLC (5) 29,327 + 40 + 29,327 Items in process of collection (647) 1,432 - 1,934 - 2,312 Bank premises 2,165 + 3 + 83 Other assets (6) 96,524 - 1,857 + 58,453 Total assets (647) 924,218 + 18,557 + 34,012 Liabilities Federal Reserve notes, net of F.R. Bank holdings 797,602 - 2,117 + 22,195 Reverse repurchase agreements (7) 44,296 + 2,540 + 10,806 Deposits (0) 38,295 + 21,336 + 1,075 Depository institutions 32,068 + 21,132 + 387 U.S. Treasury, general account 5,412 - 194 + 224 Foreign official 522 + 422 + 425 Other (0) 292 - 25 + 38 Deferred availability cash items (647) 2,725 - 1,004 - 671 Other liabilities and accrued dividends (8,9) 839 - 1,856 - 5,249 Total liabilities (647) 883,757 + 18,898 + 28,156 Capital accounts Capital paid in 20,202 + 11 + 3,228 Surplus 18,514 + 3 + 3,090 Other capital accounts 1,745 - 355 - 462 Total capital 40,461 - 342 + 5,856 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to table 2 and the note on consolidation accompanying table 5. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 7. Cash value of agreements, which are collateralized by U.S. Treasury securities. 8. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 9. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation accompanying table 5. 5. Statement of Condition of Each Federal Reserve Bank, September 10, 2008 Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis City Dallas Francisco Assets Gold certificate account 11,037 424 3,935 453 423 891 1,221 913 344 199 349 636 1,249 Special drawing rights certificate acct. 2,200 115 874 83 104 147 166 212 71 30 66 98 234 Coin 1,445 39 73 107 121 188 186 170 50 50 99 158 203 Securities, repurchase agreements, term auction credit, and other loans 780,089 31,951 311,264 29,850 35,749 68,218 68,094 57,461 23,349 12,271 29,539 27,883 84,459 Securities held outright 479,782 20,124 170,704 20,948 18,193 43,506 47,738 42,345 16,580 9,058 17,617 19,902 53,069 U.S. Treasury (1) 479,782 20,124 170,704 20,948 18,193 43,506 47,738 42,345 16,580 9,058 17,617 19,902 53,069 Bills (2) 21,740 912 7,735 949 824 1,971 2,163 1,919 751 410 798 902 2,405 Notes and bonds (3) 458,042 19,212 162,969 19,999 17,369 41,535 45,574 40,427 15,828 8,647 16,818 19,000 50,665 Federal agency (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 Repurchase agreements (4) 126,750 5,316 45,097 5,534 4,806 11,493 12,611 11,187 4,380 2,393 4,654 5,258 14,020 Term auction credit 150,000 6,500 83,383 2,582 9,400 12,945 7,510 2,985 2,075 35 7,250 2,000 13,335 Other loans 23,556 11 12,081 786 3,350 273 235 944 315 785 18 723 4,035 Net portfolio holdings of Maiden Lane LLC (5) 29,327 0 29,327 0 0 0 0 0 0 0 0 0 0 Items in process of collection 2,079 108 0 301 390 80 410 166 -33 119 85 122 330 Bank premises 2,165 122 212 64 149 211 226 208 127 111 275 252 208 Other assets (6) 96,524 5,221 26,407 8,674 6,274 23,528 7,637 4,742 1,255 1,834 1,359 2,177 7,415 Interdistrict settlement account 0 - 1,097 -32,932 + 2,941 - 6,245 - 3,402 +23,799 +14,534 + 4,053 + 2,298 - 1,544 + 4,202 - 6,608 Total assets 924,865 36,882 339,160 42,473 36,966 89,862 101,740 78,406 29,217 16,911 30,228 35,528 87,490 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A. 2. Face value of the securities. 3. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. 4. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 5. Fair value. Refer to the note on consolidation below. 6. Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. Note on consolidation: On June 26, 2008, the Federal Reserve Bank of New York extended a loan under the authority of section 13(3) of the Federal Reserve Act to Maiden Lane LLC, a limited liability company formed to acquire certain assets of Bear Stearns. The Federal Reserve Bank of New York is the primary beneficiary of Maiden Lane LLC. Consistent with generally accepted accounting principles, the assets and liabilities of Maiden Lane LLC have been consolidated with the assets and liabilities of the Federal Reserve Bank of New York in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the extension of credit from the Federal Reserve Bank of New York to Maiden Lane LLC is eliminated, the net assets of Maiden Lane LLC appear as an asset in this table (and table 1 and table 4), and the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including those with recourse only to the portfolio holdings of Maiden Lane LLC, are included in other liabilities on the next page (and in table 1 and table 4). 5. Statement of Condition of Each Federal Reserve Bank, September 10, 2008 (continued) Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis City Dallas Francisco Liabilities Federal Reserve notes outstanding 989,500 36,972 351,133 41,045 39,381 81,211 120,643 81,553 30,255 17,653 31,074 55,137 103,442 Less: Notes held by F.R. Banks 191,897 5,345 55,090 6,877 8,352 12,918 28,798 14,286 3,496 2,956 3,676 23,433 26,670 Federal Reserve notes, net 797,602 31,627 296,043 34,168 31,029 68,293 91,845 67,267 26,760 14,697 27,399 31,704 76,772 Reverse repurchase agreements (1) 44,296 1,858 15,760 1,934 1,680 4,017 4,407 3,910 1,531 836 1,626 1,837 4,900 Deposits 38,295 1,262 18,681 1,169 648 6,642 1,687 4,044 340 319 427 950 2,124 Depository institutions 32,068 1,252 12,577 1,165 644 6,560 1,684 4,042 329 318 426 950 2,121 U.S. Treasury, general account 5,412 0 5,412 0 0 0 0 0 0 0 0 0 0 Foreign official 522 2 492 4 3 11 3 2 0 1 0 1 3 Other 292 8 199 0 1 71 0 0 11 0 1 0 0 Deferred availability cash items 3,372 148 0 584 542 249 262 277 58 280 220 222 533 Other liabilities and accrued dividends (2,3) 839 150 -1,610 177 181 439 340 296 154 103 126 174 309 Total liabilities 884,404 35,044 328,874 38,033 34,079 79,640 98,542 75,793 28,841 16,236 29,798 34,887 84,638 Capital Capital paid in 20,202 787 5,087 2,328 1,521 5,190 1,596 1,301 182 320 210 268 1,413 Surplus 18,514 1,050 4,676 1,814 1,291 4,999 1,426 815 180 355 193 364 1,351 Other capital 1,745 2 523 299 75 33 178 496 14 0 27 9 89 Total liabilities and capital 924,865 36,882 339,160 42,473 36,966 89,862 101,740 78,406 29,217 16,911 30,228 35,528 87,490 Note: Components may not sum to totals because of rounding. 1. Cash value of agreements, which are collateralized by U.S. Treasury securities. 2. Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments. 3. Includes the liabilities of Maiden Lane LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of Maiden Lane LLC. Refer to the note on consolidation on the previous page. 6. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Federal Reserve notes and collateral Wednesday Sep 10, 2008 Federal Reserve notes outstanding 989,500 Less: Notes held by F.R. Banks not subject to collateralization 191,897 Federal Reserve notes to be collateralized 797,602 Collateral held against Federal Reserve notes 797,602 Gold certificate account 11,037 Special drawing rights certificate account 2,200 U.S. Treasury and agency securities pledged (1) 563,995 Other assets pledged 220,370 Memo: Total U.S. Treasury and agency securities (1) 606,532 Less: Face value of securities under reverse repurchase agreements 42,537 U.S. Treasury and agency securities eligible to be pledged 563,995 Note: Components may not sum to totals because of rounding. 1. Includes face value of U.S. Treasury and agency securities held outright, compensation to adjust for the effect of inflation on the original face value of inflation-indexed securities, and cash value of repurchase agreements.